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HomeMy WebLinkAbout1991 Ordinance No. 045OOOINANCE NO • .,!/5 SERIES OF 1991 B'i Al.1l'IIORI1'i 10 d C o·v Ira c l-fib . .S 2 -9 1 caJNCIL BILL NO . 51 rnrnaxx::ED B'i cnJNCIL MEMBER HATHAWAY l\N OOOINAN(E APPl1()Vll(; A COLLEO'IOI AGREEMEN1' BY AND llE'IWEDI THE CITY CF rnGLENXlC', COLCIWXl AND THE CENl'RAL COLLB:TIOl SEJ1VICE DEPAR'I1'1EN!' OF A!l'llNIS:.'RATIOI STATE CF CXILCW\00. WHEREAS, current al1bulance billing fo~ anbulance services after initial billing is presently sent to a private billing oollection agency; and WHEREAS, the State of Colorado can perform oollectio n procedures for govermental entities; and ~. the fee for the State services is p.irely on a contingent basis; and MlEllEAS, the contingent fee for the State of Colorado is significantly less than oor current private collection a:,npany; and ~, the state !Bs irore informational resources at it disposal; !Ool, THEREFCRE, 'lE IT OODAINFD B'i THE CITY CllJNCIL CF THE CITY CF ENGLEH:X:O, ~, ntl\T: sect.ion l. The Agreerent ootween the City o f Qiglewood and the State of Colorad'.> regarding the Collect.ion Agreement l:e ~ted, said Agreement sets forth generally as folla,r.;: l. Tenn . This agreerent shall l:egin as of the date of signing by all authorized parties anc. shall rontinue until terminated as prov!ded herein. 2. Referral . Debts will be referred to Central Collections as they becaie delinquent at. the City of Englewood . Debts can l:e referred on a rronthly basis , e ither by \o.Ork s heet , tape to tape, or electronically. No debts with balances less than twenty-five dollars ($25.00) wUl be n>ferred t o Central Collections . 3 . considerati on . In consideration of the debt collection services described in thi s /\greer>ant , Central Co llecti ons shall receive as its fee an arrount. equal to twenty-t\o.O percent (2 27,) of all cbllars collected fran t.'1e debtor . a. In the ,,vent legal action is required, the abov<' rat:! will increase five and one-half percent ( 5. 5'l,) over whac the attorn,,y is charging Central Collections for its services , not tc exceed thirty-three percent ( 33%) total . The additic:ial percentage is to oover court oosts that are -l - b. incurred . 1\11 attorneys used by the State shall be approved by the City of Diglewood . BankrUptcies will be returned to the City o f Eno· ewood as uncollectible. Central Co llections, ""1en necessary, and with the approval of the City , wi ll have the discretion to farm oot accounts to the private sector for further collection activity . The fee rat e charged to the City of Diglewood will be the rate that the private agency is charging Central Collections, not to exceed thirty-three percent ( 33i). 4. Transfer o f Funds . Funds recovered by Central Collections fran debtors will be transferred to the custaner via a warrant. SUch transfers shall be made l ess the fees described in Section 2 of this l\greerrent en a n-onthly basis. 5 . Recall and Wr ite-off . The rnly reason that a debt can be recalled fran Central Collections by the City of Englewood after placement would be that the account was referred in error, or, based oo nutual agrement, indigence, or other mitigating ci=nitance that prohibits the debtor fran paying the debt . 6. Payments Received. 1\11 payments received by the City of Englewood en any debts referred to Central Collections under the tenns of this J\greenent shall be reported to Central Collections within thirty (30) days of receipt. All such payn-ents shall be dem,ed _. for purposes of fee calculation, to have l:een recoYered by Central Collections . 1 . ~-The following reports shall be furnished to the City of Englewood by central Collections oo a onoe--m:rithly, or quarterly, basis. Once--Monthl y: Reni ttance Report; Cpen Sta t u~ Report; Closed Status 11eport QJarterly: Litigation Progress Report. 8. Terrninttion. ".::i ther party may terminate this Agreement giving the other party t;,irty (30) days prior written notice of its intent to do so . 9. Other Provisions . nus Agreerrent will be binding oo the parties hereto, their successors, legal representatives and assigns. The parties may not assign this Agreerrent or any interest herein withoot the other parties prior wri tten consent. This Agreener.t constitutes the e-itire Agreerrent and understanding be~n the parties regardless of any pre,vioos writings or oral undertakings, and its tenns will rot herein after be altered by any oral agreerrent or in formal writing, nor by failure to ins i st upon performance, or failure to exe r c i se any rights or privileges . l\lterations, acidi t ions, or char,ges in this Agreerrent will be ac:cO!l)lis hed only by written cndor serrent , arrenarent , executed by authorized parties . -2 - I 10. Notices. All rotices hereunder shall be in writing and shall be cleeTed given when mailed, postage prepaid, addressed as set forth belc,,,. Central Collecti ons 225 East 16th Avenue, Suite 555 Denver, Colorado 80203 City o f Eng l.,.,.:,od Depart,rent of Safety Services 3615 sooth El ati street Engl.,.,.:,od, -:Olorado 80110 Introwced, read in full, and passed on first reading en the 1st day of July, 1991. Published as a Bill for an Ordinance en the 4th day of July, 1991. Read by title and passed en final reading en the 15th day of July, 1991. Published by title as Ordinance No. If!;, series of 1991, on the 18th day of July 1991. -A ...... /( _ z::lt;,~. tff Lt.<-u •'-" Patri cia H, Cr<M, ':.ty Clerk ~-~ I, Patricia H. =• City Clerk of the City ct &.ql.,.,.:,od, Colora1o, hereby certify that the ar,ove and foregoing is a true O..->'j of the Ordinance passed on final reading and published by title as Ordinan.. ~ No • .ff_, 5erif,S Of 1991. (&1t,;,,~, .Y/ &...«r Patricia H. Cra., -3 - COLLlrl'ICli AGREENENT '!his Collection AgTeerent is irade as o f ---,=--=-= day of -.--e--,-~-.,,.,.·• 19 , between Cen tral Collection service , Department of lldninistration, State o fColorado and the City o f Engle,,,oc,d based on Aaninistrative Rule 1.04 for !\ccounts Receivable, for the purpose o f oollecting debts in oon formanc e to Colorado Revised Statute 24-3 0-202 . 4. This Contract oontains the following i tems and conditions: 1. Term. This agreerent shall begin as o f the date of signing by all authorized parties and s hall oontinue until terminated as provided herein. 2. Referral. Debts will be referred to Central Collections as they beoate delinquent at the City of Eliglewood . Debts can be referred on a m:>nthly basis, either by \,Ork sheet , tape to tape, or electronically . No debts wi th balances less than twenty-five dollars ($25 .00) will be referred to Central Collections. 3. Consideration. In oonsideration of the debt oollection services described in this l\greemel)t, central Collections shall receive as its fee an <Wlnl?lt equal to ~wenty-two percent (22'/,) of all <bllars oollected fran the debtor. a. In the event legal action is required, the above rate will increase five 1111d ooe-half percent ( 5. S'J,) over what the attorney is charging Central Collections for its services, not to exceed thirty-three percent (33'J,) total . 'nle additional percentage is to OCllll!r oourt costs that are incurred. All attorneys used by the State shall be approved by the City of Engle'wOOd. Bankruptcies will be returned to the City of Englewood as uncollectible. b. ce.1tral Collections , when recess ary, and with the approval of the City , will have the discretion to fann oot accounts to the private sector for further collection activity. The fee rate charged to the City of Englewood will be the rate that the private agency is charging central Co llections, not to exceed thirty-three percent (J]i). 4. Transfer o f Funds . Funds recovered by Central Collections fran debtors wi ll be trans f erred t o the custarer via a warrant. SUch transfers shall be irade less ·.he f ees described in Section 2 of this Agreement oo a rronthl y basis . 5. Recall ,:nd Write-off. The only reascn that a debt can be recalle d fran Central Collections by the City o f Eng lewood after placarent ""'-lld be that t.he account was referred in erro r, or , based on nutual agreenent, indigence, or other mi t igilting circumstanc e that prohibits the debtor fran pa.ying the debt . I I 6. Pay,rents Received. All payrrents received by the City of Englewood on any debts referred to Central Collections wider the tel.ms of this Agreerent shall be reported to Central Collections within thirty ( 30) days of receipt. All soch paym,nts shall be deerred, for f'lll)Oses of fee calculation, to have been recovered by Central Co llections. ( 7 . ~-The following reports shall be furni s he d to the City of Eng le,,uxl by Central Collections oo a ooce--ironthly, o r quarterly, basis. Cilce-Monthly: Remittance Report; Open Status Report ; Cl o sed Status Report Q,Jarterly: Litigation Progress Report. 8. Termination . Either party may tenninate this Agreement giving the other party thirty (30) days prior written notice of its intent to oo so. 9. Other Provisions. 'lttis Agreerent will be binding oo the parties hereto, their successors, legal representatives and ass i gns. The parties may not assign this Agreerent or any interest oore ir, without the other parties prior written consent. '1'1is Aqreerent oonstitutes the entire Aqreerent and \.Dlderstanding bet:,,,een the parties regardless of any previous writings or oral lDldertaldngs, and its tenns wil 1 not herein after be altered by any oral agreenent or informal writing, nor by failure to insist~ performance, or failure to exercise any rights or privileges. Alterations, additions, or changes in this Agreerrent will be ilCCCJ1l>lished only by written enoorserent, an-enarent, executed by authorized parties. 10 . Notices . All notices hereunder shall be in writing and shall be deemed given when mailed, postage prepaid, addressed as set forth below. Central Collections 22 5 East 16th Avenue, SUite 555 Denver, Colo rado 80203 City of Englewood Departnent o f Safety Services 3615 South Elat i Street Englewood, Co l orado 80110 STATE OF CCl.ffiAOO CENrRAL COLLEO'ICNS CITY OF ~ SUsan Van Dyke, Mayor ATrEST: Patricia H. Crow, City Cl erk DATE July 1, 1991 IHITIAT~D BY STAFF SOURCE COUNClL COMMU NI CATION AGENDA ITEM 11 e City Attorney Rick Dewit c, City Attorney SUBJECT Collect i o n Agreement wit h the State of Colo r ado . ISSUE/ACTIO!I PROPOSED S i nce thP passage of the ordinance approv ing the imposition of ambulance fees we have t ried a n umb er of techniques in atte:npting t o collect the charges. The cu rrent apprnach of usi ng a priv ate billing serv i ce for the initial billing. This portio n set!ms to be working well and e s sentially they are prcn1 pt a.nd efficient, of S208,103 .15 bills they have collected S98,195.00 . The next phase o f collection was to refer the matter to a private collectlon agency which has n o t been as effec tiv e. The total sent to collection has been SSB,926.38. The tot a l return&d unpaid i ■ $S7,:302.69 . {Net \'ery good.) Subsequen t to t h e ret u r n of the bills from the collection agency we have p u rs ued t h e matter i n Mu11icipal Cou rt as a code vio lation. Using a sample of SO parties ...,.e have eliminated k nown tra n sients and the p rocess serv ers, both Fublic a nd private , have b een only able to se r ve 9 of those 1ttemptad. Ne e dless to say we are not dealing with people wh o want to pay their bills or even have t h e ability to pay their b ills. The cost i s simply too high. Se r vice of processo r fees cos te range fr om S10.00 to S25.00 ea.ch. Cou r t t ime and prosecuto r time is continuing which redu ce s time for o ther matters. 1\t the present ·.,:e a re g oing to disc ont inue this aspect for now. We are gc ing to us e a new collection "Ager,cy" that appears to have a deciC:~d edge i:1 t he &rea o f dealing with dead beat s. The St ate has establ~~~Pd a ccl lectior. system in the Oepartmen-:. 01 Revenue. They a re willing t.' , ~sist local governments a nd I propose the City use them in a pilot program. -.-:ere are many a dvantages including ability to extensively rese arch the asset i:. • :~.e debtor .